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Finding the right insurance for your luxury home


Not all houses are created equal, and home insurance policies are no different either.

If you are a high-net-worth individual with a luxury home, then a standard-issue home insurance is probably not enough. Your house is extraordinary and grand, with custom features and valuable assets. Therefore, you will need home and property insurance policy just as distinct and specialized. This is where luxury or high-value home insurance comes into the picture.

Why do I need luxury home insurance?

Insurance coverage provided by mass-market insurance companies is suitable for a typical home. However, standard policies are usually inadequate for more expensive dwellings. Having a standard policy cover your luxury home leaves your property underinsured and, worse, exposed to financial risk in case of a loss.

A luxury home and its finishes and contents may exceed $1 million in value, and therefore, require policies with above-average limits. If an insurance claim exceeds your policy limit, then you will have to pay for the difference out of pocket.

Choosing the ideal insurer to cover your property and its valuables will go a long way towards ensuring that everything is protected when disaster strikes.

What makes luxury home insurance different?

With a standard home insurance, your home, personal belongings, added living expenses, and legal costs are covered should something happen. However, luxury homeowners will want to get a policy with higher coverage limits.

The best thing about specialty insurance coverage is that it is customized to your luxury home and updated annually to fit your risk profile. The scope of the specialty coverage may include:

  • Guaranteed replacement cost
  • Global travel and rental coverage
  • Cash settlement option
  • Aviation, watercraft, and classic cars coverage
  • Jewelry, antiques, and collections coverage
  • Temporary living arrangements in the same district
  • Medical payments coverage
  • Flood insurance

Aside from the broader coverage and expanded limits, luxury home insurance may include perks such as complimentary home appraisals, loss prevention consultations, and immediate reimbursements.

When should I consider luxury home insurance?

Consider high-value home insurance if:

  • The cost of rebuilding your house, including the exterior, flooring, and cabinetry, is at least $1 million
  • The home is a heritage house
  • The home has special features or design elements that are difficult to replace
  • The home contains fine art, antiques, jewelry, wine, or other priceless items
  • The home has expensive appliances, fixtures, or decorations not found in most stores
  • The home has uncommon design features, such as wine cellars, guesthouses, a home gym, and others.

Moreover, you can purchase specialized policies for your luxury condominium and vacation homes.

How much does luxury home insurance cost?

Whether purchased through a premium provider or even a standard insurer, high-value home insurance policies are more expensive than the average $1,200 cost of a standard policy. The exact amount will depend on where your home is located, your home’s age and build, your credit score, and if you prefer coverage for high-priced valuables (i.e., art, antiques, jewelry, classic cars).

How do I get started?

You can buy directly from insurance providers, but shopping for home insurance on your own can be daunting – especially when it comes to specifics.

Get in touch with an independent insurance agent who specializes in the high-value market. They can gather and provide quotes from luxury home insurance providers for you to compare and choose from.

For those who own luxury homes in Williamsburg, VA, we have partnered with Ai Insurance Services. Ai Insurance is an independent insurance and financial services company offering products across the United States.

From here, the account can be managed throughout the year according to your lifestyle changes, milestones, and filed claims.

Key takeaways

If you live in a home with a rebuilding cost of at least $1 to 1.5 million, then you’ll want to look into high-value home and property insurance. These specialty insurance policies usually include more comprehensive coverage and higher coverage limits for luxury homes.

Choosing the right insurer, agent, and policy for your luxury home is one of your most important financial decisions. To navigate this industry and to find the right solution for your home, meet with an independent insurance broker who has strong relationships with global insurers.

Are you looking for a luxury home in Williamsburg, VA? Tap our professional team at Coldwell Banker Traditions. We have been serving the property needs of our Virginia neighbors since 1885. Call 757.229.9595 or info(at)cbtraditions(dotted)com to ask about how we can help.